SINGAPORE: Brent oil may fall into a range of $61.74-$62.23 per barrel, as the uptrend from $54.60 has been violated.

A trendline rising from $54.60 has been broken. The break signals a reversal of the trend. One of the waves of the trend, the wave (4), ended at $60.35. Oil may drop towards this level, unless it could quickly climb above the trendline on Friday.

A projection analysis on the uptrend reveals a realistic target zone formed by the 338.2% and the 361.8% levels.

Resistance is at $63.54, a break above which could lead to a gain into $63.85-$63.34 range.

On the daily chart, the drop from the Thursday high of $65.52 seems to be due to a resistance established by a trendline passing through the peaks of the April 25, 2019 high of $75.60 and the Jan. 8, 2020 high of $71.75.

Oil may hover below this trendline for a few days or weeks. A retracement analysis marks a support at $63.44, the 7% level, which has been broken.

The break could have opened the way towards $61.17.

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